The UK Government has announced new funding to help remediate unsafe cladding on eligible residential buildings under 11 metres in England, marking an important change to building safety. Rather than focusing solely on a building’s height, funding will now be directed towards buildings that present the greatest fire safety risk to residents.
For freeholders, property managers, and those responsible for managing blocks of flats, this could provide access to previously unavailable cladding funding. Below, the Lansdown Block of Flats Insurance team explain what the changes mean, who may be eligible and how the new funding could affect your building.
What Is the New Cladding Funding Scheme?
Until now, government-funded cladding remediation has largely focused on taller residential buildings. Under the expanded Cladding Safety Scheme, certain lower-rise residential buildings may now qualify where a Fire Risk Appraisal of External Walls (FRAEW) identifies that remediation or mitigation work is necessary.
Applications are expected to open on 17th August 2026, with funding awarded based on the level of fire risk rather than simply the height of the building.
Which Buildings Are Eligible for the New Cladding Funding?
The scheme is aimed at multi-occupied residential buildings in England that:
- Are under 11 metres in height
- Contain two or more dwellings
- Meet the eligibility requirements set out by the Cladding Safety Scheme
- Have a completed FRAEW demonstrating that remediation or mitigation work is proportionate and necessary.
It’s important to note that funding is targeted. Blocks of Flats managers will still need to demonstrate that other routes, such as developer contributions, warranties or insurance, have been explored before public funding is approved.
What Does the New Cladding Funding Mean?
For anyone responsible for owning or managing a high-rise block of flats, unsafe cladding has led to years of uncertainty, delays in property sales and significant remediation costs.
The expanded funding is intended to help remove some of those financial barriers while accelerating the remediation of buildings that pose the greatest risk. It also recognises that fire safety cannot always be determined by building height alone.
If you’re responsible for a residential block, now is a good time to:
- Confirm who the responsible entity is for your building
- Check whether a current FRAEW has been completed
- Gather any supporting documentation ahead of the application window
- Review any existing remediation plans and funding options.
How Cladding Remediation Can Affect Building Insurance
Building safety improvements can also have wider implications for insurance.
Alongside the funding announcement, the Government has welcomed an FCA review into how insurance premiums for buildings affected by fire safety issues have changed since new rules were introduced in 2023. The review will examine whether leaseholders are receiving fair value and how completed remediation work is reflected in insurers’ risk assessments.
While remediation does not automatically reduce insurance premiums, improving a building’s fire risk profile may help when insurers assess future cover.
How Lansdown Insurance Brokers Can Help
Understanding the impact of building safety regulations and remediation work can be complex, particularly when insurance forms part of the wider picture.
At Lansdown Insurance Brokers, we work with property owners, landlords and property managers to help them arrange appropriate insurance cover for residential buildings and manage evolving building safety risks.
This article is for informational purposes only and should not be considered legal advice.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlord Insurance, Rent Guarantee Insurance and Block of Flats Insurance. Whether you’re a landlord, property manager, or residential property owner, call the team on 01242 524498 or email enquiries@lansdowninsurance.com.
Lansdown is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.